A Guide to Indian Student Education Loans with Avanse, HDFC Credila, and Auxilo

A lot of Indian students want to study abroad, but they have trouble getting the money they need to pay for fees, living costs, and other costs. Non-Banking Financial Companies (NBFCs) like Avanse, HDFC Credila, and Auxilo offer education loans that can help close this gap. These loans can open doors to top universities and fulfilling jobs.

How to Understand NBFC Student Loans:

As a first step, let’s talk about how NBFC education loans for Indian students studying abroad work. These loans often come with:

  1. Large Loan Amounts: Pay for fees, living costs, travel, and other costs related to school.
  2. Unsecured Loans: These loans don’t need security, so students with little money can get them.
  3. Flexible Repayment Options: There is a moratorium time while you study, and you can choose when to start paying back the loan after you finish the course.
  4. Attractive Interest Rates: The rates are lower than those for traditional bank loans.

Factors to Consider When Choosing:

  • Loan amount: Choose a loan that offers sufficient covering for your full costs.
  • Interest rates: Compare rates offered by different lenders and choose the most competitive choice.
  • Eligibility criteria: Ensure you meet the lender’s unique Eligibility standards.
  • Processing fees and other charges: Understand any extra fees linked with the loan.
  • payback options: Choose a payback plan that fits your financial position.
  • Customer service: Consider the lender’s name for customer service and help.

Additional Tips for Securing an Education Loan:

  • Maintain a good school record and credit score.
  • Start planning early and gather all necessary papers.
  • Compare deals from different companies before applying.
  • Consider co-applicant choices for better loan rates.
  • Read the loan deal carefully before signing.

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Avanse: Your Quick and Steady Companion

Loan Amount: Up to INR 75 Lakh (may be increased for excellent profiles)

Interest Rates: 12.5% – 13.5% (flexible based on your academic achievement and chosen course/country)

Advantages:

• Speed Demon: Known for lightning-fast loan disbursal, ensuring smooth transfer to studies.

• Co-applicant Perks: Enlist the backing of family members for possibly lower interest rates and greater loan availability.

• Career Navigation: Access expert advice to chart your career path after college.

Considerations:

• Loan Cap Limitation: Compared to HDFC Credila, the highest loan amount might feel limited for some high-cost programs.

• Interest Rate Hike: While competitive, rates at Avanse can be slightly higher than those offered by some rivals.

HDFC Credila: The Uncapped Champion

Loan Amount: No pre-defined limit (subject to HDFC Credila’s estimate)

Interest Rates: 11% – 13% (competitive rates customized to your unique character)

Advantages:

• Limitless Horizon: Pursue even the most expensive classes without thinking about loan limitations.

• Tax Advantage: Utilize the Section 80E tax advantage for extra financial comfort.

• Global Network: Leverage HDFC Credila’s established relationships with universities abroad for a smooth application process.

Considerations:

• Stricter Scrutiny: Be prepared for a more thorough application review compared to other lenders.

• Documentation Marathon: The application process might require slightly more papers.

Auxilo: The Flexible Facilitator

Loan Amount: Up to INR 65 Lakh

Interest Rates: 11.25% – 14% (dynamically set based on your background and study information)

Advantages:

• Collateral-Free Comfort: Access funds without pledging any assets, making it ideal for students with limited financial resources.

• Speed & Simplicity: Known for quick processing, allowing you to focus on school plans.

• payback Freedom: Choose a payback plan that fits with your future income potential.

Considerations:

• Lower Funding Ceiling: Compared to Avanse and HDFC Credila, the highest loan amount might not be sufficient for highly expensive programs.

• Higher Rates for Some: Depending on your background, interest rates at Auxilo might be slightly higher than those offered by rivals.

Beyond the Numbers: Factors to Ponder

Choosing the right loan goes beyond basic numbers. Here are important factors to consider for a great match:

• Eligibility Matrix: Ensure you meet the exact conditions set by each NBFC.

• Hidden Costs: Don’t forget handling fees and other charges linked with the loan.

• Customer Service: Prioritize lenders known for quick and helpful contact.

• Additional Offerings: Explore job advice, study abroad help, or insurance choices offered by the loan.

Empowering Your Journey:

Remember, getting a school loan is just the first step. Be financially smart, understand payback terms, and leverage tax benefits to handle your loan effectively. With careful planning and the right loan by your side, your journey to a global education awaits!

Now that you’ve studied the details of each lender, let’s dive into the practicalities of asking for your education loan!

Application Process:

Step 1: Gather Your Documents:

• Academic Documents: Mark sheets of 10th, 12th, and graduation (if available), entrance test scores, acceptance letter from the university abroad, proof of course fee payment.

• Financial Documents: Income tax returns of applicant and co-applicant (if applicable), bank records, proof of assets and expenses.

• Identity Documents: Passport, Aadhaar card, PAN card.

Step 2: Choose Your Online Platform:

• Avanse: Apply online through their website or mobile app.

• HDFC Credila: Visit their website or store for application help.

• Auxilo: Apply online through their website or partner sites like Vidya Lakshmi.

Step 3: Complete the Application Form:

Provide correct and thorough information about yourself, your school, and your funds.

Step 4: Submit Documents:

Upload scanned copies of all needed papers through the online site or give them physically at the shop (as per lender’s directions).

Step 5: Verification and Approval:

The lender will check your papers and credit score. The licensing process usually takes 3-4 weeks.

Step 6: Loan Disbursement:

Once accepted, the loan amount will be moved to your chosen bank account.

Required Documents (Specifics):

Avanse: Additional papers might be asked based on your course and country of study, such as grant notes or support information.

HDFC Credila: Proof of gap years (if relevant) and a thorough account of expected costs might be needed.

Auxilo: Income proof of co-applicant is required for loans reaching INR 4 Lakh.

Bonus Tips:

 • Start the application process early to avoid last-minute worry.

• Maintain correct financial records and paperwork.

• Be open about your funds and study goals.

• Consider getting professional advice from a financial planner for optimal loan selection and planning.

By following these steps and giving the necessary papers, you can smoothly handle the application process and secure your school loan with confidence. Remember, finding the right lender and preparing well are key to unlocking your foreign education dreams!

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